The source: “Rockonomics: The Economics of Popular Music” by Marie Connolly and Alan B.
Recording industry officials have tried legal, legislative, and technical methods to stop teenagers from downloading free music. Nothing has worked. Now performers are responding with their own economic strategies: They are taking their music on the road and boosting ticket prices. The results suggest that the music industry may be facing a deeper crisis than many imagined.
The top 35 pop artists worldwide now earn most of their money from concerts, not recordings. Paul McCartney grossed $64.9 million from concerts in 2002, and $2.2 million from recordings. For Céline Dion, the figures were $22.4 million and $3.1 million; for Britney Spears, $5.5 million and $1.8 million.“Income from touring exceeded income from record sales by a ratio of 7.5 to 1 in 2002,” write Marie Connolly, a Ph.D. candidate, and Alan B. Krueger, an economist, both of Princeton. “The top 10 percent of artists make [some] money selling records,” manager Scott Welch told the economists. “The rest go on tour.”